Correlation Between Ellsworth Growth and Bancroft Fund
Can any of the company-specific risk be diversified away by investing in both Ellsworth Growth and Bancroft Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ellsworth Growth and Bancroft Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellsworth Growth and and Bancroft Fund, you can compare the effects of market volatilities on Ellsworth Growth and Bancroft Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ellsworth Growth with a short position of Bancroft Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Growth and Bancroft Fund.
Diversification Opportunities for Ellsworth Growth and Bancroft Fund
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ellsworth and Bancroft is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Growth and and Bancroft Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancroft Fund and Ellsworth Growth is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ellsworth Growth and are associated (or correlated) with Bancroft Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancroft Fund has no effect on the direction of Ellsworth Growth i.e., Ellsworth Growth and Bancroft Fund go up and down completely randomly.
Pair Corralation between Ellsworth Growth and Bancroft Fund
Assuming the 90 days trading horizon Ellsworth Growth is expected to generate 1.04 times less return on investment than Bancroft Fund. But when comparing it to its historical volatility, Ellsworth Growth and is 1.21 times less risky than Bancroft Fund. It trades about 0.08 of its potential returns per unit of risk. Bancroft Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,120 in Bancroft Fund on September 2, 2024 and sell it today you would earn a total of 295.00 from holding Bancroft Fund or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ellsworth Growth and vs. Bancroft Fund
Performance |
| Timeline |
| Ellsworth Growth |
| Bancroft Fund |
Ellsworth Growth and Bancroft Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Growth and Bancroft Fund
The main advantage of trading using opposite Ellsworth Growth and Bancroft Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Growth position performs unexpectedly, Bancroft Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bancroft Fund will offset losses from the drop in Bancroft Fund's long position.| Ellsworth Growth vs. The Gabelli Equity | Ellsworth Growth vs. The Gabelli Equity | Ellsworth Growth vs. The Gabelli Utility | Ellsworth Growth vs. Bancroft Fund |
| Bancroft Fund vs. Ellsworth Growth and | Bancroft Fund vs. The Gabelli Equity | Bancroft Fund vs. The Gabelli Utility | Bancroft Fund vs. GAMCO Global Gold |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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